Question: Sun Pty Ltd uses the allowance method to record bad debts expense. When accounts receivable is aged at the end of December 2020, it is

Sun Pty Ltd uses the allowance method to record bad debts expense. When accounts receivable is aged at the end of December 2020, it is estimated that 5% of Sun Pty Ltds accounts receivable will be uncollectable. Accounts receivable at 31 December are $300,000 and the Allowance for doubtful debts has a credit balance of $5,000. What is the adjusting journal entry to record bad debts expense for the year ended 31 December 2020?

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